Getting a mortgage in this day and age is certainly far easier than it was before the digital era. Having said that, getting the best mortgage deal possible can be difficult. Nowadays people can apply for a mortgage from the comfort of their own home. If you play your cards right and get the correct home loan for your situation, you can potentially save large sums of money.
By following the tips in this article, you will have a better understanding on how to get the best mortgage deal possible. Let’s start going over the tips on getting the best mortgage deal.
- Find out what your credit score is early
It is definitely a good idea to check your credit score before you even think of going shopping for a home. A credit score is what many mortgage lenders use to figure out how much money they can lend you or if they even can lend funds to you in the first place.
Make sure to check your credit reports for any problems or errors that may have arisen over the years. This will not give you a good credit score, but its helpful to know where your credit score stands before you start applying for a mortgage.
- Research and meet lenders
Normally, you would meet with a mortgage lender or broker to discuss mortgage shopping. Typically, you would meet with a mortgage lender or broker in person to help prepare you for mortgage shopping. Given the current state of the world, this tip is now slightly altered. Nowadays, you will most likely be researching mortgage lenders or brokers online and having virtual meetings through video-conferencing apps. Make sure you take note of their level of knowledge about the mortgage process and how helpful they seem to be-you do not want to get stuck with an unhelpful mortgage broker if you can avoid it.
- Check your credit score again
Please note that this tip is talking about your credit score and not your credit reports. They may sound similar, but they are different in a few key ways. It doesn’t matter if you are ready to make a purchase or not-keep an eye on your credit score. If it’s lower than you’d like, monitor your improvements to your credit score. Raising your credit score can save you substantial sums of money, and there are ways you can do this for free online.
- Get the mortgage done, then worry about the house
Don’t put the horse before the cart so to speak. You may want to go get the big fancy house of your dreams, but you need to be financially realistic. When you are purchasing a home, think about how much you can afford to pay realistically-just because you may want that massive backyard with a view doesn’t mean you should get it. Think about your mortgage payments, taxes, and insurance before buying that expensive home of your dreams.
- Get a preapproval
Getting a preapproval helps you get a mortgage. By undergoing the thorough financial investigation that comes with applying for a preapproval and passing it, you get some helpful paperwork. For one, the bank provides a commitment to lend you up to a set amount of money. Additionally, having a preapproval helps impress home sellers and helps you when you are in a bidding war competing with other buyers for their home.
This article was written by Ian, an intern at Irish Mortgage Brokers and Yes.ie from the USA.